SOURCE: Nestor, Inc.

November 08, 2006 12:25 ET

Santa Maria, California Selects Nestor Traffic Systems, Inc. for Automated Red Light Enforcement Services

The New Contract Is the Result of a Competitive Bid Solicitation by the City

PROVIDENCE, RI -- (MARKET WIRE) -- November 8, 2006 -- Nestor, Inc. (NASDAQ: NEST), the parent company of Nestor Traffic Systems, Inc., a leading provider of advanced traffic enforcement solutions, is pleased to announce that the City of Santa Maria, California yesterday executed a contract with Nestor Traffic Systems for the provision of automated traffic enforcement services. The three-year contract, the result of the City's competitive bid solicitation, calls for NTS to install, maintain and operate the CrossingGuard® automated red light camera system at 8 approaches.

Mr. William Danzell, Chief Executive Officer of Nestor Traffic Systems, stated, "We are pleased that, after an evaluation of other vendor offerings, the City of Santa Maria has chosen to partner with Nestor to address their traffic safety needs. The City joins our growing California customer base, including the City of Los Angeles, where NTS has 18 approaches installed to date of the up to 64 authorized under contract."

As of today, Nestor has 206 CrossingGuard® actively enforced approaches installed in 28 jurisdictions across 8 states and 1 Canadian province, and 10 speed units operating in three states. Including the new Santa Maria contract, the Company has an additional 232 CrossingGuard® approaches and 11 speed units authorized under contracts, which approaches and units may be installed in the future.

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. CrossingGuard® uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light and speed violations. In addition, CrossingGuard® offers customers a unique Collision Avoidance™ safety feature that can help prevent intersection collisions. CrossingGuard® is a registered trademark of Nestor Traffic Systems, Inc. Collision Avoidance™ and NTS Video VASCAR™ are trademarks of Nestor Traffic Systems, Inc. Nestor Traffic Systems is the exclusive North American distributor for Vitronic's PoliScanSpeed™ scanning LiDAR, which tracks multiple vehicles bi-directionally in multiple lanes simultaneously. PoliScanSpeed™ is a trademark of Vitronic. For more information, call (401) 274-5658 or visit

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "expects," "will," and similar expressions, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not meet the expectations disclosed in our forward-looking statements and investors should not place undue reliance on those statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including: further approvals of identified approaches, market acceptance of our products, competition, legal and legislative challenges to automated traffic enforcement, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Investors are advised to read Nestor's Annual Report, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. The forward-looking statements in this letter represent our current views and we disclaim any obligation to update these forward-looking statements.